Energy labels and heuristic decision-making: The role of cognition and energy literacy

Energy labels are used worldwide to overcome the inefficiency in household energy use. Presenting energy efficiency in grade-like categories has been found to induce heuristic decision-making, known as the “class valuation effect”. This study investigates whether visualising energy efficiency using a continuous-scale label increases consumers’ consciousness when purchasing appliances. We examine this question in an online survey with randomised decision tasks conducted in China and the Netherlands. In the Dutch sample, the effectiveness of continuous-scale labels depends on individuals’ holistic cognitive tendency and the type of comparison they are faced with, whereas the Chinese sample is not sensitive to these moderators. Moreover, energy literacy shows mixed influence on individual decisions. Results suggest that representing energy efficiency on continuous scales can be used as supportive visual information to facilitate purchase decisions. Regarding energy education, knowledge that directly links to daily energy use seems to translate well into consumers’ conscious decisions. •Continuous efficiency ratings on energy labels mitigate the class valuation effect.•The effectiveness of continuous-scale ratings partially depends on cognitive style.•The processing of continuous and categorical ratings differs across countries.•Knowledge of daily-life energy use helps to identify cost-efficient appliances.•Energy-saving attitudes tend to increase the valuation of energy efficiency.